Gold prices posted their third weekly loss on Friday with XAU/USD down more than 4.5% on the week. The reversal from uptrend resistance is testing the initial trend support and while the threat of a larger bull market correction remains, the immediate decline could be at risk as the week opens. The battle lines are drawn on the weekly technical chart of XAU/USD, with XAU/USD posting its third consecutive weekly decline on Friday. The sell-off in the mid-line of the 2023 uptrend was exhausted on Thursday with the price unable to set a weekly close below, the focus is on a potential deviation from this slope with medium-term risks remaining weighted to the downside while below the record weekly close at 2736, a break below the August high at 2532 would expose subsequent support targets at the April high/38.2% retracement of the yearly range at 2450.82 and 2324.41, losses below this threshold would invalidate the uptrend, from a trading perspective, a good area to reduce parts of short exposure/low protective stops - rallies should be limited to 2658 if the price is heading lower at this stage with a close below 2531 required to fuel the next stage.
December gold futures sellers have gained the technical advantage in the near term, as the bearish trend continues on the 4-hour chart. The next upside objective for buyers is a close above the strong resistance level at $2,650.00, while sellers aim to push prices below the strong support level at $2,500.00. The first resistance level is at $2,585.80, followed by $2,600.00, while the first support is seen at $2,541.50, followed by $2,525.00.